OK - so reading through our Terms and Conditions I came across the stop payment section that states "Our stop-payment cutoff time is one hour after the opening of the next banking day after the banking day on which we receive the item". Am I interpreting this correctly as saying that a customer can put a stop payment on an item up to 1 hour after opening of the next banking day after we receive the item? If so - is this a regulation? I was always under the impression that we must receive a stop payment request before an item actually clears our bank. In reading our EFT disclosure we state that we must receive a stop payment request 3 business days or more before the payment is scheduled to be made. Doesn't this contradict what our Terms and Conditions state (I'm taking our Terms and Conditions to be talking about all types of debits).

I guess my question is, is the cutoff time a common requirement or regulation or is this something we can change? And shouldn't it match what the EFT requirement states?

Thanks!

If so - is this a regulation? No.

Sounds like you need to get a little more specific in your Terms and Conditions agreement.

Thanks Randy and I agree. I mean 6 - 8 pages of Terms and Conditions just isn't long enough! haha

"Item" under the UCC does not include EFT transfers that are subject to Regulation E. There is no need to, and I don't recommend, cutting down on the Reg E lead time for stops in order to make them look like stops on "items."

And yes, the rule requiring you to accept a stop payment order on an item on the day following presentment of that item can be found in the UCC. section 4-303(a)(5) if the item hasn't already been paid in cash, certified, or otherwise become accountable for the item.

If I issue a check to Randy and it is presented to my bank in a cash letter today, August 29, 2016, and I call the bank before its cutoff hour (as defined in 4-303(a)(5)) on Tuesday, August 30, to stop payment on the check, the stop order is timely. If the bank hasn't paid attention to the UCC and hasn't established a cutoff hour for the purpose of this section of the UCC, the cutoff hour is the close of business on Tuesday.

So you should adopt a reasonable cutoff hour in accordance with the UCC and include it in your deposit terms and conditions concerning stop payments.

And by the way, if the check I wanted to stop happens to have overdrawn my account in last night's posting, if I make the cutoff hour, and the stop payment is timely, you're going to have to make things like the check did not overdraw the account -- no OD counter increase, no fee, etc., and you'd better return the check "stop payment" and not "NSF" or "overdrawn."

Thanks for the information John! I have such a hard time knowing where to find the information I'm looking for. I promise I googled information on this before posting and could not find the UCC you mentioned......I don't know why.

I appreciate your help though!!

Thanks again...